Q. We export services. We are not taking any benefits under the Foreign Trade Policy. We have no imports or exports of goods. Are we required to take an importer exporter code (IEC) number? Please give the relevant legal provisions.
As per the proviso to Section 7 of the Foreign Trade (Development & Regulation) Act, 1992 (as amended), “in case of import or export of services, the Importer-exporter Code Number shall be necessary only when the service or technology provider is taking benefits under the foreign trade policy or is dealing with specified services or technology.”
Q. We refer to Note no. 3 in the SION General Notes for Chemical and Allied Products, which says: “In case where the input(s) required for the manufacture of the resultant export product have norms from further basic stages(s) for manufacture of one or more of such inputs, the licence can be issued by using these norms (excluding packing material, if any) in place of such inputs, for manufacture of the resultant export product.” Is this provision applicable when we apply for advance authorisation on a “no norms” basis under Para 4.07 of the HBP?
Yes. The note lays down a principle very clearly and there is no reason why it should not apply in case of applications on a “no norms” basis.
Q. We import from countries with whom India has Free Trade Agreements. Are we required to submit Form-I, appended with the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) to the Customs, every time we import under claim of concessional or nil duty?
No. Section 28DA of the Customs Act requires an importer to possess sufficient information about origin of imports, where preferential tariff treatment has been claimed. Form-I helps guide and assist an importer in assessing origin of goods. An importer is not required to submit this form at the time of filing Customs declaration. However, when there is a doubt on the declared country of origin, the Customs officer may ask the importer for origin-related details, in which case the importer would have to submit the form along with supporting documents.
Q. We export most of our goods manufactured in our DTA unit. We refer to the Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019, and the related CBIC Circular no. 34/2019- Customs dated October 1, 2019. We are considering taking licence under 65 of the Customs Act, 1962 for our existing manufacturing unit, so that we can avoid taking advance authorisations and EPCG authorisations. Can we carry over our stock of duty free goods imported under our existing advance authorisations and EPCG authorisations?
The existing provisions are silent on this issue. In my opinion, there ought to be no objection to carrying over such stocks to the bonded warehouse and let the export obligation be fulfilled through export of goods manufactured that require the use of relevant capital goods and inputs.